REPORT TO REGIONAL PARKS COMMITTEE MEETING OF OCTOBER 19, 2016

REPORT TO REGIONAL PARKS COMMITTEE MEETING OF WEDNESDAY, OCTOBER 19, 2016

SUBJECT

Funding for the Completion of the E&N Rail Trail

ISSUE

To consider funding options for the completion of phases 3 and 4 of the E&N Rail Trail.

BACKGROUND

The E&N Rail Trail — Humpback Connector links 6 communities within the Capital Regional District (CRD) and will be 17 km when complete. Construction of the E&N Rail Trail is taking place in phases; a map showing completed and future phases of the Rail Trail is attached (Attachment 1). The CRD Board did not dedicate funding to this initiative as the goal was to fund the project from grants as they became available. To date, a total of $18.2 million has been granted to the CRD for the E&N Rail Trail. Staff continue to seek grant opportunities for future sections.

Phases 1 and 2 are substantially constructed and funding is in place to complete these sections. Segments of Phase 1 are located in Langford, View Royal, Esquimalt and Victoria. The CRD recently received a Bike BC grant to assist with completion of the outstanding 1 km of Phase 1 between Hallowell and Maplebank roads. Phase 2 of the trail, between Hallowell Road and the Four Mile Bridge in View Royal, was completed in 2015.

Phase 3 is a 1 km section in the City of Langford between Atkins Avenue and Savory School. This section of the trail will connect existing sections of the trail between Savory School and the Galloping Goose Regional Trail, creating a continuous 11 km off-street route between Langford and Victoria. Phase 4 is a 1.3 km section between Esquimalt Road and the Johnson Street Bridge.

ALTERNATIVES

That the Regional Parks Committee recommend to the Capital Regional District Board:

Alternative 1

That up to $6.1 million be borrowed under a new loan authorization bylaw to complete construction of phases 3 and 4 of the E&N Rail Trail – Humpback Connector by 2019.
That staff be directed to assess and report back on the merit and opportunities of extending the land acquisition fund beyond 2019, to enable funding of both future regional parkland acquisitions and other major parks infrastructure assets.

Alternative 2

That staff be directed to assess and report back on the merit and opportunities of extending the land acquisition fund beyond 2019, to enable funding of both future regional parkland acquisitions and other major parks infrastructure assets.

ECONOMIC IMPLICATIONS

Completion of phases 3 and 4 of the E&N Rail Trail is estimated to cost $6.1 million. Phase 3 is estimated to cost $3.63 million. Phase 4 is estimated to cost $2.49 million.

If $6.1 million were borrowed for this initiative, the total payment over a 15-year period is estimated to be $7,600,592, based on a 2.9 per cent interest rate. The annual debt servicing cost for such a loan would be approximately $506,706. If approved, the loan authorization bylaw will be prepared and brought back to the Board for approval. Staff would continue to seek grant funding to reduce the amount of internal funding required to complete the E&N Rail Trail.

The Land Acquisition Fund was established in 2000 for a 10-year period at a rate of $10 per average household assessed value. In 2010, the Fund was extended for another 10 years and the rate was increased gradually to its current level of $20 per average household value. The Land Acquisition Fund now generates approximately $3.7 million per year. The Fund expires in 2019.

The Fund is used to purchase lands for the completion of the regional parks system, as directed in the board-approved Regional Parks Strategic Plan (2012-2021) and the Land Acquisition Strategy (2015-2017). Between 2000 and 2014, the CRD, with its partners, has purchased 4,485 hectares of land totalling $48 million. The CRD contributed $35 million (73%) from the Land Acquisition Fund and partners contributed $13 million (27%). In 2015, an additional 86 hectares with a value of $2.5 million were acquired through donations and transfers from partners.

SOCIAL IMPLICATIONS

Completing phases 3 and 4 of the E&N Rail Trail provides opportunity for residents and visitors to enjoy uninterrupted pedestrian and cycling experiences. Additionally, short cycling rides and walks or longer full-day excursions are possible as a result of connections to the Galloping Goose Regional Trail. Completing phases 3 and 4 will contribute to the quality of life enjoyed by CRD residents and encourage business opportunities related to sustainable tourism. Cycling commuters will have access to a continuous corridor for travel purposes.

INTERGOVERNMENTAL IMPLICATIONS

Phase 3 will close the gap between the existing trail ending at Savory School and a new segment of trail along Atkins Road built by the City of Langford with Bike BC funding in 2016.

A section of Phase 4 from Esquimalt Road to Johnson Street Bridge through the Roundhouse area will be constructed by developers. Alignment of this section has not been confirmed with all stakeholders, including the City of Victoria.

CONCLUSION

Construction of the E&N Rail Trail was originally intended to be grant funded. Completing phases 3 and 4 of the E&N Rail Trail is estimated to cost approximately $6.1 million. Completing these phases would provide residents and visitors with an active transportation option connecting the rapidly-growing Westshore communities to Victoria, and enhance the quality of life of CRD residents. In order to expedite progress on the project independent of revenue from grants, it is recommended that approval be granted to borrow up to $6.1 million under a new loan authorization bylaw to complete construction of phases 3 and 4 of the trail by 2019 while continuing to actively seek grants to off-set the cost.

RECOMMENDATION